annuiteettien

Annuiteettien is a Finnish term referring to annuities, which are financial products typically sold by insurance companies. An annuity is a contract between an individual and an insurance company that provides a stream of income, usually for retirement. The individual pays a lump sum or a series of payments to the insurance company, and in return, the company promises to make periodic payments to the individual at a later date, often during their retirement years.

There are several types of annuities. Immediate annuities begin payments shortly after purchase, while deferred annuities start payments at a future date. Annuities can also be fixed, offering a guaranteed interest rate and predictable payments, or variable, where the investment performance determines the payout, carrying more risk but also potential for higher returns. Indexed annuities link their performance to a market index, offering some protection against market downturns while still participating in potential gains.

The primary purpose of annuities is to provide a reliable source of income that an individual cannot outlive, thus mitigating longevity risk. They are often used as a supplement to pensions and social security. The tax treatment of annuities varies by jurisdiction, but typically, earnings grow tax-deferred until withdrawals begin. Annuities can be complex financial instruments with various fees, surrender charges, and other terms that purchasers should carefully review before committing.